This increasingly global auto market makes such distinctions between “domestic” and “import” brands less and less relevant, with important policy implications that support stronger fuel economy standards in the U.S.

Countries outside the U.S. generally have stricter fuel economy standards and targets than current policy in the U.S. Automakers generally benefit if they can make similar vehicles around the world rather than niche products for individual markets. Ford, for instance, is embracing this concept of creating similar vehicles around the world, calling it “Ford Global DNA.” If the U.S. raises its standards to levels abroad, automakers can sell fewer models globally and cut costs.

Similarly, auto companies based both here and abroad support many American jobs. It makes little sense to weaken fuel economy standards just to try to protect GM, Ford and Chrysler jobs – especially when the companies clearly need to compete abroad as well. The most discussed proposal for standards out to 2025 contains a separate light truck standard, which accounts for the greater reliance of these companies on light truck sales.

As time goes on and sales outside the U.S. continue to grow, automakers will have even more “global DNA,” and the distinctions between Detroit and automakers based abroad will likely blur further. Similar fuel economy standards around the world should benefit these global companies.